Uttam Modi, Kolkata V. ITO, Ward-54(3), Kolkata, Kolkata

ITA 2236/KOL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87688 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 17-12-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: N O N E
• Keywords: Depreciation
• Section: 142(1)

Judgement Text

I.T.A. NO . 2 2 36 / KOL ./201 4 ASSESSMENT YEAR: 200 6 - 20 0 7 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER I.T.A. NO. 2 2 36 / KOL / 20 1 4 ASSESSMENT YEAR : 200 6 - 20 0 7 UTTAM MODI,....................................... . ....... .. ..... ........... .. .APP ELL ANT DREAM RESIDENCY, BLOCK - 3, FLAT - 2B, SALUA, RAJARHAT, KOLKATA - 700 136 [ PAN : A E RPM 8453 J ] - VS. - INCOME TAX OFFICER , ........................... ................... ... . RESPONDENT WARD - 5 4 ( 3 ), KOLKATA APPEARANCES BY: N O N E , FOR THE ASSESSEE S HRI RAJESH KUMAR , J CIT, SR. D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : FEBRUARY 2 6 , 2 01 5 DATE OF PRONOUNCING THE ORDER : FEBRUARY 2 6 , 201 5 O R D E R PER GEORGE MATHAN : THIS IS AN APPEAL FILED BY THE ASSESSE E AGAINST THE ORDER OF L D. COMMISSIONER OF INCOME TAX (APPEALS) - X XX I I , KOLKATA IN APPEAL NO. 330 / X XX I I / 13 - 14/W - 54(3)/R&T/KOL D ATED 29 . 10 .201 4 FOR THE ASSESSMENT YEAR 200 6 - 0 7 . 2 . NONE REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI RAJESH KUMAR , JCIT, SR. D.R. REPRESENTED ON BEHAL F OF THE REVENUE. 3. THE ASSESSEE HAS FILED A LETTER FOR ADJOURNMENT WHICH IS REJECTED AND THE APPEAL OF THE ASSESSEE IS DISPOSED OF ON MERIT. 4. I N THE ASSESSEE S APPEAL, THE ASSESSEE HAS RAISED 15 GROUNDS. THE GROUNDS ARE AGAINST THE VARIOUS DISALLOWAN CES MADE BY THE ASSESSING I.T.A. NO . 2 2 36 / KOL ./201 4 ASSESSMENT YEAR: 200 6 - 20 0 7 PAGE 2 OF 3 OFFICER ON ESTIMATE BASIS AND WHICH HAS BEEN CONFIRMED BY THE LD. CIT(APPEALS). 5. LD. SR. D.R. SUBMITTED THAT AS MANY OF THE EXPENSES WERE NOT FULLY VOUCHED AND WERE ALSO IN THE NATURE OF PERSONAL EXPENSES, THE ASSESSING OFFICER HAD DISALLOWED PART OF THE EXPENSES ON ESTIMATE BASIS. HE VEHEMENTLY SUPPORTED THE ORDER OF THE ASSESSING OFFICER AND LD. CIT(APPEALS). 6. I HAVE CONSIDERED THE SUBMISSION OF LD. SR. D.R., ALSO PERUSED THE ORDER OF LD. CIT(APPEALS) AND THE ASSESSING OFFI CER. A PERUSAL OF THE ASSESSMENT ORDER SHOWS THAT THE ASSESSING OFFICER HAS DISALLOWED THE EXPENSES OUT OF THE PROFIT & LOSS A/C. AT THE RATE OF 25% TO 50% ON ESTIMATE BASIS ON ACCOUNT OF NON - PRODUCTION OF BILLS AND VOUCHERS IN RESPECT OF ADVERTISEMENT EXP ENDITURE, BOOKS AND PERIODICALS, CAR REPAIRING AND TAX TOKEN, DATA PROCESSING CHARGES, DIARY & CALENDAR, ENTERTAINMENT EXPENSES, GENERAL EXPENSES, MOBILE CHARGES & TELEPHONE EXPENSES, SALES PROMOTION EXPENSES, TRAVELLING & CONVEYANCE AND XEROX CHARGES. THE ASSESSING OFFICER HAS FURTHER DISALLOWED 25% OF THE EXPENSES TOWARDS PERSONAL USE IN RESPECT OF BIKE EXPENSES AND PETROL EXPENSES. THE ASSESSEE IS IN THE BUSINESS OF AN INSURANCE AGENT. THE ASSESSEE HAS IN THE COURSE OF ASSESSMENT FILED A LETTER ALONGWITH THE XEROX COPY OF THE FIR DATED 09.11.2006 SPECIFYING THE LOSS OF BRIEF CASE CONTAINING ECG MACHINE, PAN CARD, BANK CHEQUE BOOK AND SOME DOCUMENTS OF PAPER. ADMITTEDLY THIS CANNOT BE CALLED AN AFTER - THOUGHT IN SO FAR AS THE FIR HAS BEEN LODGED ON 09.11.2 006, WHEREAS THE RETURN WAS FILED ON 03.07.2006 AND 143(1) WAS ISSUED ON 19.04.2007 AND NOTICES UNDER SECTION 143(2) AND 142(1) ISSUED MUCH AFTER. IN THE COURSE OF ASSESSMENT, THE ASSESSEE HAS ALSO PRODUCED THE LEDGER COPIES IN RESPECT OF THE VARIOUS EXPEN SES . C ONSIDERING THE FACT THAT THE ASSESSEE HAS LOST HIS DOCUMENTS AND ADMITTEDLY IS NOT IN A POSITION TO PRODUCE THE EVIDENCES , I N THE INTEREST OF JUSTICE AND CONSIDERING THE VOLUME OF I.T.A. NO . 2 2 36 / KOL ./201 4 ASSESSMENT YEAR: 200 6 - 20 0 7 PAGE 3 OF 3 TRANSACTIONS DONE BY THE ASSESSEE, THE ESTIMATED DISALLOWANCE ON ACCOUN T OF NON - PRODUCTION OF BILLS AND VOUCHERS MADE BY THE ASSESSING OFFICER IN RESPECT OF ALL THE EXPENSES IS REDUCED TO 10%. FURTHER THE EXPENSES IN RESPECT OF THE PERSONAL USE REPRESENTING THE BIKE EXPENSES AND THE PETROL EXPENSES STANDS REDUCED FROM 25% TO 10%. THE LOSS ON THE SALE OF THE CAR WHICH IS TREATED AS CAPITAL LOSS BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT(APPEALS) STANDS CONFIRMED. HOWEVER, THE ASSESSING OFFICER IS DIRECTED TO REDUCE THE SAID LOSS FROM THE BLOCK OF ASSETS WHEN COMPUTIN G THE DEPRECIATION. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 6 TH FEBRUARY , 201 5 . SD/ - GEORGE MATHAN ( JUDICIAL MEMBER) KOLKATA, THE 2 6 TH D AY OF FEBRUARY , 201 5 COPIES TO : (1) UTTAM MODI, DREAM RESIDENCY, BLOCK - 3, FLAT - 2B, SALUA, RAJARHAT, KOLKATA - 700 136 (2) INCOME TAX OFFICER, WARD - 54(3), KOLKATA (3) COMMISSIONER OF INCOME - TAX (APPEALS) (4) COMMISSIONER O F INCOME TAX ( 5 ) THE DEPARTMENTAL REPRESENTATIVE ( 6 ) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA B ENCHES, KOLKATA LAHA/SR. P.S .